Financial Institutions/Intermediaries for Investment and Credit Mobilization for Kenya Investment Mechanism (KIM) Project

The Feed the Future Kenya Investment Mechanism (KIM) is a five-year project that will unlock financing and investment by addressing two principal market failures that have discouraged investors from financing certain segments of the clean energy and agriculture sectors: 1) insufficient quality consulting services (financial, transaction advisory, strategy and business performance), and 2) limited availability of financial products tailored to agriculture and clean energy.

To address these market failures, KIM will create a sustainable, market-based ecosystem for finance and investment by mobilizing capital into the horticulture, dairy, livestock, and clean energy value chains (VCs), and facilitating an enabling environment conducive to investment. This program will mobilize private capital into target VCs through smart incentives to business advisory services (BAS) providers and financial institutions (FIs) that encourage deeper engagement in KIM’s target sectors, and by building partnerships with key actors that can deliver access to market, know-how, and technology to drive VC competitiveness. Concurrently, KIM will lead policy reform efforts focused on removing barriers inhibiting large-scale investment into the target sectors, therefore unlocking further finance. The two objectives of KIM will result in the project serving as an investment platform that mobilizes substantial capital from the public and private sectors and builds partnerships between stakeholders in the financial ecosystem, ultimately contributing to USAID’s overall goal of fostering broad-based, sustained, and inclusive economic growth in Kenya.

FIs will be eligible to receive success fee commissions for investments or credit mobilization for transactions that qualify under dairy, livestock, horticulture and energy for agriculture value chains (VC). A VC is the process or activities by which a company adds value to an article, including production, marketing, and distribution. Examples of VC actors eligible for support include input dealers, producers, processors, aggregators, storage providers, traders, retailers, exporters, agriculture logistics firms, and technology providers. Horticulture includes mango, passion fruit, banana, avocado, pineapple, sweet potato, and African leafy vegetables only. Any link in the VC can be a candidate for KIM’s facilitating financing, e.g., financing that supports sorghum/maize producers or processors (if used for livestock feed for livestock) would qualify.

Approved client enterprises must also be located within, selling to, or working with suppliers/producers that are located within the 17 Feed the Future counties in Kenya: Homa Bay, Migori, Kisii, Kisumu, Siaya, Kakamega, Bungoma, Busia, Vihiga, Kitui, Makueni, Taita Taveta, Isiolo, Marsabit, Turkana, Garissa, and Wajir.

Commercial banks (only) will ALSO be eligible to receive success fee award payments for investments or credit mobilization under Regional Feed the Future transactions, defined as transactions for an enterprise located in any county in Kenya, operating in any agricultural value chain that is traded regionally or internationally. For example, transactions for a Kenyan enterprise that exports coffee would qualify. Please see attached Invitation to Tender (ITT) for additional details and scope of work.

Please send your Tender in accordance with the Details for Submission above by the Closing Date and Time to Ben Omondi Otieno, KIM Subawards Manager, at us.KIMprocurement@thepalladiumgroup.com. Please submit questions by email to us.KIMprocurement@thepalladiumgroup.com.

Details

Kenya

Closing date:
30 September 2020